Contract Glossary
Exclusivity Clause
Definition
A contract provision that restricts one or both parties from entering similar agreements with competitors. It guarantees that you're the only game in town, at least for the scope and duration the clause covers.
In Practice
A freelance designer signs an exclusivity clause saying they won't work for competing companies during the engagement. A distributor gets an exclusive right to sell a product in the Northeast US. Exclusivity clauses trade freedom for security: the restricted party gives up options, while the other party gets guaranteed access or loyalty.
Common in these contract types
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